Interconnected Forces: Analyzing Urbanization, Economic Growth, Energy Consumption, and Forest Area in the Top 10 Populous Nations’ CO2 Emissions

Amin Pujiati, Yozi Aulia Rahman, Nurjannah Rahayu Kistanti, Annis Nurfitriana Nihayah and Nur Amalia Nabila
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Amin Pujiati: Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia
Yozi Aulia Rahman: Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia
Nurjannah Rahayu Kistanti: Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia
Annis Nurfitriana Nihayah: Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia
Nur Amalia Nabila: Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 2, 669-675

Abstract: Economic progress is often seen as a means to enhance living standards, yet it often comes with an unintended consequence: a decline in environmental well-being. This research seeks to validate the Environmental Kuznets Curve (EKC) theory within the top 10 most populous nations and scrutinize the impact of urbanization, economic advancement, energy usage, and forest coverage on CO2 emissions. Utilizing data sourced from the World Development Indicator spanning from 2000 to 2019, this study employed a robust analytical approach known as the generalized method of moments (GMM) dynamic panel data, validated through Sargan and Arellano-Bond tests. The findings affirmed that economic growth, energy consumption, and forest area exerted significant influence on carbon dioxide emissions, aligning with the EKC hypothesis. However, contrary to expectation, urbanization didn't display a discernible impact on emissions, likely due to well-integrated transportation systems and higher educational standards prevalent in urban settings. This underscores the necessity for a sustainable economic growth strategy, advocating for industries with minimal pollution and eco-friendly products conducive to easy recycling. Furthermore, initiatives aimed at expanding forested areas should consider innovative techniques like vertical garden-based reforestation.

Keywords: CO2 Emissions; Urbanization; Environmental Kuznets Curve; Energy Consumption; Generalized Method of Moments (search for similar items in EconPapers)
JEL-codes: O18 P18 P25 R11 (search for similar items in EconPapers)
Date: 2024
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